The business troubles of Anil Dhirubhai Ambani Group (ADAG) are continuously deepening and the noose of the central investigative agencies seems to be tightening rapidly on the group companies. The Enforcement Directorate (ED), taking strict action in cases to financial irregularities, loan default and money laundering, has so far temporarily seized huge assets worth a total of ₹ 23,100 crore of Anil Ambani Group. It is believed to be one of the largest confiscation actions ever taken against a single industrial group in the country's corporate history. This aggressive action by the investigating agencies has not only dealt a huge blow to the financial credibility of the group, but has also created an atmosphere of panic among the investors and shareholders of its stock market listed companies. ED's biggest ever seizure and details of seized assets released by Enforcement Directorate The new attachment proceedings target movable and immovable properties belonging to various key companies of the Anil Ambani group. According to investigation agency sources, the seized assets worth ₹23,100 crore include expensive commercial premises located in Mumbai, Delhi and other major metros of the country, corporate headquarters, valuable land plots, financial assets and huge sums of money deposited in various bank accounts. The main basis of this entire action of ED is the provisions of Prevention of Money Laundering Act i.e. PMLA. The investigating agency alleges that Anil Ambani-led companies did not utilize corporate loans worth thousands of crores of rupees taken from various public and private banks for the purpose for which the loan was sanctioned, but instead misappropriated the funds and diverted them through a network of shell companies. Yes Bank is the main case of loan fraud and fund diversion. This tightening of the noose of the investigating agencies on Anil Ambani Group has mainly arisen from the famous loan default and fund diversion case to Yes Bank. A detailed investigation by the Enforcement Directorate has revealed that group non-banking financial companies like Reliance Home Finance Limited (RHFL) and Reliance Capital withdrew huge amounts of money under suspicious circumstances, flouting rules and transferring it to other associated institutions. During the tenure of Yes Bank founder Rana Kapoor, huge loans were issued by the bank to various distressed companies of Anil Ambani group without adequate guarantees. When these loans turned into Non-Performing Assets (NPA), the ED initiated a criminal investigation into the case from the money laundering angle following recommendations from the Reserve Bank of India and the Central Bureau of Investigation (CBI). All-round pressure on Reliance Capital and Reliance Infrastructure. There is a direct and negative impact of this attachment on the operational and financial performance of Reliance Group's key units Reliance Capital, Reliance Infrastructure and Reliance Power. Reliance Capital is already going through the Insolvency and Bankruptcy proceedings (NCLT), where lenders were considering resolution plans to recover its huge outstanding loans. However, this resolution process is likely to become more legally complex after the assets have been seized by the ED. On the other hand, Reliance Infrastructure and Reliance Power, which operate various infrastructure and energy projects, are also facing serious difficulties in obtaining fresh credit, working capital and bank guarantees, posing a risk of slowing down the pace of their ongoing projects. Panic among investors and adverse impact on the stock market As soon as the news of seizure of huge amount of ₹ 23,100 crore by the Central Investigation Agency became public, there was a huge fall in the shares of listed companies of Anil Ambani Group in the Indian stock market. Shares of Reliance Power and Reliance Infrastructure witnessed lower circuit during the trading session, causing huge financial losses to retail investors and institutional investors. Market analysts believe that until the legal dispute and the actions of the investigating agencies are resolved transparently, the shares of the group companies will remain highly volatile. Financial market experts have advised small investors to avoid making any new investments in the shares of this group for the time being and keep a vigilant eye on the current legal developments. Legal options and stance of Anil Ambani Group On the other hand, legal advisors and spokespersons of Anil Ambani Group say that they will oppose the attachment orders issued by ED in legal forums by following due procedures of law. It is being argued on behalf of the group that they are fully cooperating with the investigating agencies and all the financial transactions were done as per the rules and in a transparent manner. The group claims that the valuation of the seized properties and the charges against it are based on one-sided findings, which will be challenged before the Appellate Authority (PMLA Appellate Tribunal) and the Hon'ble High Court. However, this tough stance of the government and regulators clearly indicates that a policy of zero tolerance is being adopted in cases of corporate fraud and tampering with the banking system.